Bulletin Issue 47 – June 2001

Oil palm plantations currently extend over millions of hectares of forest lands throughout the tropics. Further plantations are either being implemented or promoted in almost every Southern country where soil, water and solar energy fill the requirements of this palm. From Mexico to Brazil, from West to East Africa and from Asia and Southeast Asia to Oceania, governments are being urged to create conditions for the expansion of this crop.

Oil palm plantations in Cameroon cover more than 80,000 hectares divided in three different sectors: 1) large scale industrial plantations, with some 58,000 hectares; 2) Village plantations comprising 12,000 hectares and 3) "Informal" plantations covering some 10,000 hectares. Village plantations were promoted by the state for the supply of the large state-owned plantation and processing companies. The former are plantations which are contractually obliged to deliver, at market prices, their entire production to the processing plants of the --now privatised-- agroindustries: SOCAPALM, CAMDEV or PAMOL. The "market price" is obviously established by these enterprises, which at the local level constitute absolute monopolies.

In March this year, planters at Cote d'Ivoire's Ehania agro-industrial oil palm plantation unit embarked on an "unlimited strike action" to press for an increase in the price of palm oil. The strike paralysed the activities of three factories that collect and transform palm oil. The Ehania planters, grouped in an agricultural cooperative called Palm-Ehania, were protesting against a drop in the purchase price of their produce, which had since January 2001 fallen from 23 to 19.07 CFA francs (1 dollar = 700 CFA francs).

More than 125,000 hectares of land are under oil palm cultivation in Ghana, mostly under the nucleus estate model, which implies a large plantation surrounded by smaller plantations established in local farmers' lands.

Oil palm is indigenous to the Nigerian coastal plain, having migrated inland as a staple crop. In the case of Nigeria, oil palm cultivation is part of the way of life --indeed it is the culture-- of millions of people. However, during the past decades the country has become a net importer of palm oil. While in the early 1960s, Nigeria's palm oil production accounted for 43% of the world production, nowadays it only accounts for 7% of total global output.

On 13 June this year, Amnesty International released a report on Burma titled "Myanmar. Ethnic minorities: targets of repression." The report states that for the last 13 years this organization has documented "the widespread use of forced labour of ethnic minorities by the Myanmar military" and adds that "perhaps the most common human rights violation of ethnic minorities is forced labour of civilians, who are much more likely to be seized by the army than the majority Burman group."

Since 1997, the Mong Reththy Investment Cambodia Oil Palm Company has planted an area of 3,800 hectares with oil palm trees. The company, with the help of the Phnom Penh authorities, moved 99 families from a squat in Phnom Penh to work on the plantation adjacent to Route 4, 150 kilometres south of Phnom Penh. However, few of the people moved from Phnom Penh have actually found work on the plantations, the processing factory is still to be built, and many people are simply moving back to Phnom Penh to look for work there. (See WRM Bulletin no. 39.) The company behind the project, Mong Reththy Investment Cambodia Oil Palm is owned by Cambodian businessman Mong Reththy (60 per cent), Borim Universal (South Korea, 30 per cent), and Lavanaland (Malaysia, 10 per cent).

Jambi province, Sumatra, is one of a number of areas where the newly empowered regional government is pushing for major expansion in oil palm plantations. The provincial governor has announced plans to develop a million hectares of oil palm in the province by the year 2005. Last year, the provincial authorities threatened to cancel the licences of 49 plantation companies which had been allocated over 700,000 hectares in Jambi but had not yet planted it with oil palm. In December, Malaysia's ambassador to Indonesia announced that Malaysian companies were ready to take over around 356,300 hectares of oil palm plantations in the province that current lease-holders had failed to develop.

Malaysia is the world's number one producer and exporter of palm oil. However, the development of this sector has not only not benefited the local people but, on the contrary, has resulted in serious adverse effects, particularly in the state of Sarawak. This crop, which generates huge profits for a few large companies linked to the government and local elites, leads to serious negative social and environmental impacts that affect the majority of the population, giving rise to social conflicts that nearly always resulting in human rights violations.

Oil palm was introduced in Colombia in 1932, but its commercial development started by the end of the fifties. In the mid sixties there were over 18,000 hectares of that crop in the provinces of César, Magdalena, Santander and Norte de Santander. Palm cultivation expanded to other provinces and according to data published in 1995 by Fedepalma, by that year there were already around 130,000 hectares, being the country's main oil crop, mainly in the north, central and eastern zones of the country.

In Ecuador, the relaunching of oil palm cultivation has given rise to different reactions. In a long interview published by a widely read newspaper, for instance, the question was raised on whether oil palm plantation in the province of Esmeraldas would bring this poor Ecuadorian region nearer to paradise (El Universo, 11/3/2000), while at the same time other headlines stated that oil palm cultivation is destroying native forests and that thousands of hectares have been destroyed in San Lorenzo (La Hora, 18/5/2001).

Chiapas means much for many people all over the world. It is a synonym of Zapatistas and of Subcomandante Marcos, and these, in turn, of struggle for liberation and against injustice. However, for national and transnational corporations, Chiapas is still merely a synonym of cheap land, cheap labour, abundant resources and profit opportunities. It is not surprising then that both the government and the company owners are promoting a number of projects that would harm the rich cultural and biological diversity of Chiapas. Among these is the promotion of oil palm monocultures by the government, opening the door to foreign investors, especially from Malaysia, who dominate the international palm oil market.

The history of oil palm in Central America is closely linked to the history of the economic group United Fruit. Preston and Keith, two US businessmen who, for 20 years since 1870 concentrated on planting and exporting bananas to the USA, merged their companies in 1899 to found the United Fruit Company (UFCO), as a means of diversifying their plantations and increasing their profits.

Papua New Guinea (PNG) possesses one of the planet's largest remaining tropical rainforest. At least seventy-five percent of its original forest cover is still standing, occupying vast, biologically rich tracts over 100,000 square miles in all. Its forests provide the habitat for about 200 species of mammals, 20,000 species of plants, 1,500 species of trees and 750 species of birds, half of which are endemic to the island. It has been estimated that between 5 and 7% of the known species in the world live in PNG. Rare plants and animals like the largest orchid, the largest butterfly, the longest lizard, the largest pigeon and the smallest parrot ever registered live in these forests. The forests also constitute the home of the indigenous peoples.

The following description of work in plantations was written in 1987. Unfortunately, the situation has in general terms not improved much and it is therefore applicable to most of today's plantations. "Work on an oil-palm plantation is back-breaking and dangerous. Palm-oil fruits (used in making margarine and cooking oil) grow alongside thorny fronds, 12 to 15 feet above the ground. They are cut down with a long and heavy pole and the skin, head and eyes of the harvester are likely to be cut by the falling fronds. In Malaysian plantations, fruit is cut down mainly by men, while women collect and load the 40-kilogram fruit branches, and thorns can become permanently lodged in the hands, causing constant irritation and infection.

In 1996, the World Rainforest Movement and the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Association (IUF-UITA,IUL) made a joint statement to the Intergovernmental Panel on Forests (IPF) focused on the social aspects of plantation development, where "plantation workers are among the poorest and most exploited of all agricultural labourers."

Despite the numerous social and environmental impacts of monoculture oil palm plantations, the industry is continuously trying to increase productivity and lower costs, which can only lead to even more serious impacts on people and nature. It is the system's perverse logic. Within that logic, the obvious step forward is genetic manipulation of oil palms. Not only to increase productivity, but to alter the end-product: palm oil. And they are already working in that direction.

-During the international negotiations on climate change, some governments committed themselves to reducing carbon dioxide emissions in their own countries. This very encouraging attitude from an environmental perspective --for the reduction of the greenhouse effect-- can at the same time be the worst decision against the environment if it were to be implemented through the promotion of plantations to act as so-called "carbon sinks."